@StandardMedia

Sorry state: 69 Government agencies have no boards

1 weeks ago, 00:00

By: Moses Njagih

Sixty-nine State corporations with multi-billion shilling budgets do not have boards of directors, exposing management problems.

Of these, 30 are without substantive chief executive officers, as it is the boards that are mandated to recruit top managers.

The findings are in a report tabled before a watchdog committee of Parliament that laid bare the wanting status of State corporations.

Some are said to be operating without fully constituted boards and top managers, which is affecting their performance.

The National Assembly’s Public Investment Committee (PIC) was shocked to learn that despite pumping billions of shillings into the parastatals, the Jubilee government had not fully constituted boards for 69 out of the total 180 corporations.

And as a result, the report from the Directorate of State Corporations states that 30 of these parastatals, representing 17 per cent, are operating without substantive CEOs.

Although the report did not name all the companies in this state, it lists the National Social Security Fund, which holds in the excess of Sh200 billion in workers' savings, the National Hospital Insurance Fund (NHIF), Kenya Airports Authority and Kenya Ports Authority among those whose boards and management teams are not fully constituted.

“It is such a risky affair that the appointing authority, in this case the President, whose duty it is to appoint board chairpersons, has left this window open. It means that parastatals are easily making decisions involving huge sums of money without the relevant approvals,” complained PIC chairman and Mvita MP Abduswamad Nassir.

“The President needs to act fast if we sincerely want to save taxpayers' money from possible abuse and want to ensure that Kenyans get value for money for the investments made by these parastatals, otherwise the situation as it is now is very wanting,” he added.

Mr Nassir expressed fears that top management teams in the parastatals operating without substantive board chairmen or CEOs could be engaging in illegalities, which could end up not being corrected in good time and result in loss of funds.

He cited the NHIF, which he said was critical in rolling out universal healthcare under President Uhuru Kenyatta's Big Four agenda but which could either stall or be implemented without board approval as the parastatal does not have a substantive chairman.


Read More


Category: politics news

Suggested

1 day ago, 14:01
@DailyNation - By: Sam Kiplagat
ANC's Barack Muluka to remain in office, judge says

Court declines to lift orders as sought by nominated MP Godfrey Osotsi. ...

Category: topnews news politics
1 day ago, 11:54
@StandardMedia - By: Daniel Psirmoi
Raila to MCAs: Stick to your legislative, oversight roles

“The main roles of the county assemblies are legislation and oversight, not execution of policies or procurement of goods and services,” he added. ...

Category: politics news
18 hours ago, 00:08
@StandardMedia - By: Lilian Kwamboka
DP William Ruto's light moment in Kisii

On a twitter post, Ruto shared regards to Kisii Governor James Ongwae concerning their meeting over a cup of tea accompanied by chapatis on May 25. ...

Category: politics news
1 day ago, 15:51
@StandardMedia - By: Eric Abuga
DP Ruto: Arrest and prosecute government officials mentioned in mega corruption scandals

Ruto was making his remarks for the first time on the alleged Sh1.9 billion maize scandal at the NCPB and Sh9 billion corruption scam at NYS. ...

Category: politics news
1 day ago, 09:40
@StandardMedia - By: Geoffrey Mosoku An ...
Now eyes on Uhuru as mega corruption scandals pile up

Grand corruption at NYS, Cereals Board and Kenya Pipeline Company spotlight President Uhuru Kenyatta's will, or lack of it, to fight the vice ...

Category: politics news
3 days ago, 18:22
@StandardMedia - By: Michael Chepkwony
Why many Kenyans want election date changed

The groups have been lobbing for the date to be pushed to December. ...

Category: politics news

@StandardMedia

Sorry state: 69 Government agencies have no boards

1 weeks ago, 00:00

By: Moses Njagih

Sixty-nine State corporations with multi-billion shilling budgets do not have boards of directors, exposing management problems.

Of these, 30 are without substantive chief executive officers, as it is the boards that are mandated to recruit top managers.

The findings are in a report tabled before a watchdog committee of Parliament that laid bare the wanting status of State corporations.

Some are said to be operating without fully constituted boards and top managers, which is affecting their performance.

The National Assembly’s Public Investment Committee (PIC) was shocked to learn that despite pumping billions of shillings into the parastatals, the Jubilee government had not fully constituted boards for 69 out of the total 180 corporations.

And as a result, the report from the Directorate of State Corporations states that 30 of these parastatals, representing 17 per cent, are operating without substantive CEOs.

Although the report did not name all the companies in this state, it lists the National Social Security Fund, which holds in the excess of Sh200 billion in workers' savings, the National Hospital Insurance Fund (NHIF), Kenya Airports Authority and Kenya Ports Authority among those whose boards and management teams are not fully constituted.

“It is such a risky affair that the appointing authority, in this case the President, whose duty it is to appoint board chairpersons, has left this window open. It means that parastatals are easily making decisions involving huge sums of money without the relevant approvals,” complained PIC chairman and Mvita MP Abduswamad Nassir.

“The President needs to act fast if we sincerely want to save taxpayers' money from possible abuse and want to ensure that Kenyans get value for money for the investments made by these parastatals, otherwise the situation as it is now is very wanting,” he added.

Mr Nassir expressed fears that top management teams in the parastatals operating without substantive board chairmen or CEOs could be engaging in illegalities, which could end up not being corrected in good time and result in loss of funds.

He cited the NHIF, which he said was critical in rolling out universal healthcare under President Uhuru Kenyatta's Big Four agenda but which could either stall or be implemented without board approval as the parastatal does not have a substantive chairman.


Read More

Category: politics news

Suggested

1 day ago, 14:01
@DailyNation - By: Sam Kiplagat
ANC's Barack Muluka to remain in office, judge says

Court declines to lift orders as sought by nominated MP Godfrey Osotsi. ...

Category: topnews news politics
1 day ago, 11:54
@StandardMedia - By: Daniel Psirmoi
Raila to MCAs: Stick to your legislative, oversight roles

“The main roles of the county assemblies are legislation and oversight, not execution of policies or procurement of goods and services,” he added. ...

Category: politics news
18 hours ago, 00:08
@StandardMedia - By: Lilian Kwamboka
DP William Ruto's light moment in Kisii

On a twitter post, Ruto shared regards to Kisii Governor James Ongwae concerning their meeting over a cup of tea accompanied by chapatis on May 25. ...

Category: politics news
1 day ago, 15:51
@StandardMedia - By: Eric Abuga
DP Ruto: Arrest and prosecute government officials mentioned in mega corruption scandals

Ruto was making his remarks for the first time on the alleged Sh1.9 billion maize scandal at the NCPB and Sh9 billion corruption scam at NYS. ...

Category: politics news
1 day ago, 09:40
@StandardMedia - By: Geoffrey Mosoku An ...
Now eyes on Uhuru as mega corruption scandals pile up

Grand corruption at NYS, Cereals Board and Kenya Pipeline Company spotlight President Uhuru Kenyatta's will, or lack of it, to fight the vice ...

Category: politics news
3 days ago, 18:22
@StandardMedia - By: Michael Chepkwony
Why many Kenyans want election date changed

The groups have been lobbing for the date to be pushed to December. ...

Category: politics news
Our App